AAFM Exam GLO_CWM_LVL_1 Topic 6 Question 80 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 80
Topic #: 6

[All GLO_CWM_LVL_1 Questions]

Speculators

ABet on future movements of price of asset

BTry to reduce/ eliminate an existing risk

CTake advantage of price differential between two markets

DNone of the above

Show Suggested Answer

Suggested Answer: C

by Melda at May 21, 2024, 02:15 AM

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Coral

2 months ago

Speculators, huh? Sounds like a fancy word for 'people who like to play with fire and hope they don't get burned.'

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Lorean

2 months ago

B) Try to reduce/ eliminate an existing risk - Really? Speculators create risk, they don't reduce it. Trying to hedge your bets, are we? Nice try, but I'm not falling for that one.

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Sherrell

5 days ago

D) None of the above - Speculators can take on various strategies, not just one specific option.

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Charlene

21 days ago

C) Take advantage of price differential between two markets - Speculators are always looking for opportunities to profit from market differences.

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Jeannine

1 months ago

A) Bet on future movements of price of asset - Speculators are always trying to predict the future.

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Chau

2 months ago

C) Take advantage of price differential between two markets - Wow, that's a clever one. Speculators are all about exploiting arbitrage opportunities. Nice try, exam writers!

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Bette

2 months ago

I'm going with D) None of the above. Speculators don't reduce risk, they take on more risk in the hopes of profiting from it. This question is trying to trick us.

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Dorothea

2 months ago

A) Bet on future movements of price of asset - That's right, the definition of a speculator is someone who bets on future price movements. I'm pretty confident in this one.

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Chandra

13 days ago

C) Take advantage of price differential between two markets - Yes, speculators often look for opportunities in price differentials between markets.

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Barney

15 days ago

B) Try to reduce/ eliminate an existing risk - Speculators actually take on risk rather than reduce it.

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Dianne

29 days ago

A) Bet on future movements of price of asset - That's right, the definition of a speculator is someone who bets on future price movements. I'm pretty confident in this one.

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